(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||
(Address of principal executive office) | (Zip Code) | ||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
Emerging growth company |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit 99.1 | |
Exhibit 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL and contained in Exhibit 101. |
LEIDOS HOLDINGS, INC. | |||||
Date: | February 18, 2020 | By: | /s/ James C. Reagan | ||
James C. Reagan | |||||
Its: | Executive Vice President and Chief Financial Officer |
• | Federal Aviation Administration Flight Services Support: The Company was awarded a follow-on prime contract by the Federal Aviation Administration ("FAA") to continue serving the general aviation community under the Future Flight Services Program ("FFSP"). Under the FFSP contract, Leidos will help the FAA achieve its vision to transform and modernize the delivery of flight briefing services by reducing program costs, providing technology enhancements, and engaging the broader general aviation community. The single award, firm-fixed-price contract has a five-year base period of performance followed by ten one-year option periods at an approximate value of $1 billion, if all options are exercised. |
• | U.K. Metropolitan Police Service Command and Control System Support: The Company was appointed by the Metropolitan Police Service ("MPS") to upgrade its Command and Control system responsible for officer and vehicle deployment to emergency (999) and non-emergency (101) calls and events across the city of London. Under the program, Leidos U.K. will deliver a flexible map centric system that captures emergency contacts from the public and subsequently coordinates deployment of officers and other resources to incidents, pre-planned events and other operations. The new Command and Control solution will provide a modern, easy to use, cloud-based system to help the MPS visualize where officers are located, allow more efficient deployment, drive operational efficiency and keep the citizens and visitors of London safe. The single award, firm-fixed-price contract has a 22-month implementation phase followed by a 10-year base period of performance and a five-year option. |
• | U.S. Intelligence Community: The Company was awarded contracts valued at $1.2 billion, if all options are exercised, by U.S. national security and intelligence clients. Though the specific nature of these contracts is classified, they all encompass mission-critical services that help to counter global threats and strengthen national security. |
• | Revenues of $12.6 billion to $13.0 billion; |
• | Adjusted EBITDA margins of 10.0% to 10.2%; |
• | Non-GAAP diluted EPS of $5.30 to $5.65; and |
• | Cash flows provided by operating activities at or above $1.0 billion. |
CONTACTS: | |
Investor Relations: | Media Relations: |
Kelly P. Hernandez | Melissa L. Koskovich |
571.526.6404 | 571.526.6850 |
ir@leidos.com | koskovichm@leidos.com |
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 3, 2020 | December 28, 2018 | January 3, 2020 | December 28, 2018 | |||||||||||||
Revenues | $ | 2,954 | $ | 2,647 | $ | 11,094 | $ | 10,194 | ||||||||
Cost of revenues | 2,527 | 2,278 | 9,546 | 8,690 | ||||||||||||
Selling, general and administrative expenses | 171 | 182 | 689 | 729 | ||||||||||||
Bad debt expense and recoveries | (5 | ) | — | (40 | ) | — | ||||||||||
Acquisition, integration and restructuring costs | 2 | 5 | 5 | 37 | ||||||||||||
Asset impairment charges | — | — | — | 7 | ||||||||||||
Equity earnings of non-consolidated subsidiaries | (2 | ) | (6 | ) | (18 | ) | (18 | ) | ||||||||
Operating income | 261 | 188 | 912 | 749 | ||||||||||||
Non-operating expense: | ||||||||||||||||
Interest expense, net | (34 | ) | (34 | ) | (133 | ) | (138 | ) | ||||||||
Other (expense) income, net | — | (4 | ) | 87 | (1 | ) | ||||||||||
Income before income taxes | 227 | 150 | 866 | 610 | ||||||||||||
Income tax (expense) benefit | (46 | ) | 38 | (196 | ) | (28 | ) | |||||||||
Net income | 181 | 188 | 670 | 582 | ||||||||||||
Less: net income attributable to non-controlling interest | — | — | 3 | 1 | ||||||||||||
Net income attributable to Leidos common stockholders | $ | 181 | $ | 188 | $ | 667 | $ | 581 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.27 | $ | 1.27 | $ | 4.66 | $ | 3.85 | ||||||||
Diluted | 1.26 | 1.25 | 4.60 | 3.80 | ||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 142 | 148 | 143 | 151 | ||||||||||||
Diluted | 144 | 150 | 145 | 153 | ||||||||||||
Cash dividends declared per share | $ | 0.34 | $ | 0.32 | $ | 1.32 | $ | 1.28 |
January 3, 2020 | December 28, 2018 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 668 | $ | 327 | ||||
Receivables, net | 1,734 | 1,877 | ||||||
Other current assets | 410 | 543 | ||||||
Assets held for sale | — | 92 | ||||||
Total current assets | 2,812 | 2,839 | ||||||
Property, plant and equipment, net | 287 | 237 | ||||||
Intangible assets, net | 530 | 652 | ||||||
Goodwill | 4,912 | 4,860 | ||||||
Operating lease right-of-use assets, net | 400 | — | ||||||
Other assets | 426 | 182 | ||||||
$ | 9,367 | $ | 8,770 | |||||
LIABILITIES AND EQUITY | ||||||||
Accounts payable and accrued liabilities | $ | 1,837 | $ | 1,491 | ||||
Accrued payroll and employee benefits | 435 | 473 | ||||||
Long-term debt, current portion | 61 | 72 | ||||||
Liabilities held for sale | — | 23 | ||||||
Total current liabilities | 2,333 | 2,059 | ||||||
Long-term debt, net of current portion | 2,925 | 3,052 | ||||||
Operating lease liabilities | 326 | — | ||||||
Deferred tax liabilities | 184 | 170 | ||||||
Other long-term liabilities | 182 | 178 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.0001 par value, 10 million shares authorized and no shares issued and outstanding at January 3, 2020 and December 28, 2018 | — | — | ||||||
Common stock, $.0001 par value, 500 million shares authorized, 141 million and 146 million shares issued and outstanding at January 3, 2020 and December 28, 2018, respectively | — | — | ||||||
Additional paid-in capital | 2,587 | 2,966 | ||||||
Retained earnings | 896 | 372 | ||||||
Accumulated other comprehensive loss | (70 | ) | (30 | ) | ||||
Total Leidos stockholders’ equity | 3,413 | 3,308 | ||||||
Non-controlling interest | 4 | 3 | ||||||
Total equity | 3,417 | 3,311 | ||||||
$ | 9,367 | $ | 8,770 | |||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 3, 2020 | December 28, 2018 | January 3, 2020 | December 28, 2018 | |||||||||||||
Cash flows from operations: | ||||||||||||||||
Net income | $ | 181 | $ | 188 | $ | 670 | $ | 582 | ||||||||
Adjustments to reconcile net income to net cash provided by operations: | ||||||||||||||||
Gain on sale of businesses | (1 | ) | — | (88 | ) | — | ||||||||||
Depreciation and amortization | 60 | 64 | 234 | 257 | ||||||||||||
Amortization of equity method investments | 3 | 3 | 11 | 10 | ||||||||||||
Stock-based compensation | 14 | 11 | 52 | 44 | ||||||||||||
Deferred income taxes | (11 | ) | (52 | ) | 18 | (49 | ) | |||||||||
Bad debt expense | (7 | ) | — | 12 | — | |||||||||||
Non-cash interest (income) expense | (3 | ) | (2 | ) | (10 | ) | 6 | |||||||||
Asset impairment charges | — | — | — | 7 | ||||||||||||
Other | — | — | 2 | 2 | ||||||||||||
Change in assets and liabilities, net of effects of acquisitions: | ||||||||||||||||
Receivables | 48 | (60 | ) | 116 | (58 | ) | ||||||||||
Other current assets | 5 | (49 | ) | (44 | ) | (73 | ) | |||||||||
Accounts payable and accrued liabilities | (137 | ) | (107 | ) | 116 | (46 | ) | |||||||||
Accrued payroll and employee benefits | (12 | ) | 59 | (29 | ) | (12 | ) | |||||||||
Income taxes receivable/payable | 54 | 10 | 34 | 10 | ||||||||||||
Other long-term assets | (21 | ) | 11 | (49 | ) | 56 | ||||||||||
Other long-term liabilities | (4 | ) | 28 | (53 | ) | 32 | ||||||||||
Net cash provided by operating activities | 169 | 104 | 992 | 768 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from disposition of businesses | (5 | ) | — | 178 | — | |||||||||||
Payments for property, equipment and software | (54 | ) | (20 | ) | (121 | ) | (73 | ) | ||||||||
Net proceeds from sale of assets | — | — | 96 | — | ||||||||||||
Acquisitions of businesses | — | — | (94 | ) | (81 | ) | ||||||||||
Collections on promissory notes | 5 | — | 5 | 40 | ||||||||||||
Other | — | — | 1 | — | ||||||||||||
Net cash (used in) provided by investing activities | (54 | ) | (20 | ) | 65 | (114 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Repurchases of stock and other | (28 | ) | (256 | ) | (458 | ) | (438 | ) | ||||||||
Dividend payments | (97 | ) | (47 | ) | (198 | ) | (198 | ) | ||||||||
Payments of long-term debt | (30 | ) | — | (80 | ) | (59 | ) | |||||||||
Proceeds from issuances of stock | 11 | 1 | 27 | 14 | ||||||||||||
Payment of tax indemnification liability | — | — | — | (23 | ) | |||||||||||
Proceeds from real estate financing transaction | — | 14 | — | 14 | ||||||||||||
Other | — | (2 | ) | — | (17 | ) | ||||||||||
Net cash used in financing activities | (144 | ) | (290 | ) | (709 | ) | (707 | ) |
Three Months Ended | Twelve Months Ended | |||||||||||||||
January 3, 2020 | December 28, 2018 | January 3, 2020 | December 28, 2018 | |||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (29 | ) | (206 | ) | 348 | (53 | ) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | 746 | 575 | 369 | 422 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 717 | $ | 369 | $ | 717 | $ | 369 |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
January 3, 2020 | December 28, 2018 | Dollar change | Percent change | January 3, 2020 | December 28, 2018 | Dollar change | Percent change | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Defense Solutions | $ | 1,400 | $ | 1,265 | $ | 135 | 10.7 | % | $ | 5,367 | $ | 4,966 | $ | 401 | 8.1 | % | ||||||||||||||
Civil | 1,028 | 885 | 143 | 16.2 | % | 3,729 | 3,411 | 318 | 9.3 | % | ||||||||||||||||||||
Health | 526 | 497 | 29 | 5.8 | % | 1,998 | 1,817 | 181 | 10.0 | % | ||||||||||||||||||||
Total | $ | 2,954 | $ | 2,647 | $ | 307 | 11.6 | % | $ | 11,094 | $ | 10,194 | $ | 900 | 8.8 | % | ||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||
Defense Solutions | $ | 124 | $ | 80 | $ | 44 | 55.0 | % | $ | 407 | $ | 353 | $ | 54 | 15.3 | % | ||||||||||||||
Civil | 97 | 63 | 34 | 54.0 | % | 295 | 284 | 11 | 3.9 | % | ||||||||||||||||||||
Health | 73 | 68 | 5 | 7.4 | % | 242 | 230 | 12 | 5.2 | % | ||||||||||||||||||||
Corporate | (33 | ) | (23 | ) | (10 | ) | 43.5 | % | (32 | ) | (118 | ) | 86 | (72.9 | )% | |||||||||||||||
Total | $ | 261 | $ | 188 | $ | 73 | 38.8 | % | $ | 912 | $ | 749 | $ | 163 | 21.8 | % | ||||||||||||||
Operating income margin: | ||||||||||||||||||||||||||||||
Defense Solutions | 8.9 | % | 6.3 | % | 7.6 | % | 7.1 | % | ||||||||||||||||||||||
Civil | 9.4 | % | 7.1 | % | 7.9 | % | 8.3 | % | ||||||||||||||||||||||
Health | 13.9 | % | 13.7 | % | 12.1 | % | 12.7 | % | ||||||||||||||||||||||
Total | 8.8 | % | 7.1 | % | 8.2 | % | 7.3 | % |
January 3, 2020 | December 28, 2018 | |||||||
Defense Solutions(1): | ||||||||
Funded backlog | $ | 2,417 | $ | 2,821 | ||||
Negotiated unfunded backlog | 9,150 | 6,925 | ||||||
Total Defense Solutions backlog | $ | 11,567 | $ | 9,746 | ||||
Civil(1): | ||||||||
Funded backlog | $ | 1,913 | $ | 2,304 | ||||
Negotiated unfunded backlog | 5,802 | 5,045 | ||||||
Total Civil backlog | $ | 7,715 | $ | 7,349 | ||||
Health: | ||||||||
Funded backlog | $ | 1,083 | $ | 1,254 | ||||
Negotiated unfunded backlog | 3,725 | 2,483 | ||||||
Total Health backlog | $ | 4,808 | $ | 3,737 | ||||
Total: | ||||||||
Funded backlog | $ | 5,413 | $ | 6,379 | ||||
Negotiated unfunded backlog | 18,677 | 14,453 | ||||||
Total backlog | $ | 24,090 | $ | 20,832 |
• | Acquisition, integration and restructuring costs - Represents acquisition, integration, lease termination and severance costs related to the Company's acquisitions. |
• | Amortization of acquired intangible assets - Represents the amortization of the fair value of the acquired intangible assets. |
• | Amortization of equity method investment - Represents the amortization of the fair value of the acquired equity method investment. |
• | Acquisition related financing costs - Represents the amortization of the debt financing commitments in connection with the Company's entry into a purchase agreement with Dynetics, Inc. |
• | Gain on sale of business - Represents the net gain on sale of businesses. |
• | Asset impairment charges - Represents impairments of long-lived tangible assets. |
• | Other tax adjustments - Represents discrete tax items. |
Quarter Ended January 3, 2020 | ||||||||||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investment | Acquisition related financing costs | Gain on sale of business | Other tax adjustments | Non-GAAP results | |||||||||||||||||||||||||
Operating income | $ | 261 | $ | 2 | $ | 43 | $ | 3 | $ | — | $ | — | $ | — | $ | 309 | ||||||||||||||||
Non-operating expense, net | (34 | ) | — | — | — | 2 | (1 | ) | — | (33 | ) | |||||||||||||||||||||
Income before income taxes | 227 | 2 | 43 | 3 | 2 | (1 | ) | — | 276 | |||||||||||||||||||||||
Income tax expense(1) | (46 | ) | — | (11 | ) | (1 | ) | — | — | (1 | ) | (59 | ) | |||||||||||||||||||
Net income attributable to Leidos common stockholders | $ | 181 | $ | 2 | $ | 32 | $ | 2 | $ | 2 | $ | (1 | ) | $ | (1 | ) | $ | 217 | ||||||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 1.26 | $ | 0.01 | $ | 0.22 | $ | 0.01 | $ | 0.01 | $ | — | $ | — | $ | 1.51 | ||||||||||||||||
Diluted shares | 144 | 144 | 144 | 144 | 144 | 144 | 144 | 144 |
Quarter Ended January 3, 2020 | ||||||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investment | Acquisition related financing costs | Gain on sale of business | Non-GAAP results | ||||||||||||||||||||||
Income before income taxes | $ | 227 | $ | 2 | $ | 43 | $ | 3 | $ | 2 | $ | (1 | ) | $ | 276 | |||||||||||||
Depreciation expense | 16 | — | — | — | — | — | 16 | |||||||||||||||||||||
Amortization expense | 47 | — | (43 | ) | (3 | ) | — | — | 1 | |||||||||||||||||||
Interest expense, net | 34 | — | — | — | (2 | ) | — | 32 | ||||||||||||||||||||
EBITDA | $ | 324 | $ | 2 | $ | — | $ | — | $ | — | $ | (1 | ) | $ | 325 | |||||||||||||
EBITDA margin | 11.0 | % | 11.0 | % |
Quarter Ended December 28, 2018 | ||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investments | Other tax adjustments | Non-GAAP results | |||||||||||||||||||
Operating income | $ | 188 | $ | 5 | $ | 50 | $ | 3 | $ | — | $ | 246 | ||||||||||||
Non-operating expense, net | (38 | ) | — | — | — | — | (38 | ) | ||||||||||||||||
Income before income taxes | 150 | 5 | 50 | 3 | — | 208 | ||||||||||||||||||
Income tax benefit (expense)(1) | 38 | (1 | ) | (12 | ) | (1 | ) | (67 | ) | (43 | ) | |||||||||||||
Net income attributable to Leidos common stockholders | $ | 188 | $ | 4 | $ | 38 | $ | 2 | $ | (67 | ) | $ | 165 | |||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 1.25 | $ | 0.03 | $ | 0.25 | $ | 0.01 | $ | (0.44 | ) | $ | 1.10 | |||||||||||
Diluted shares | 150 | 150 | 150 | 150 | 150 | 150 |
Quarter Ended December 28, 2018 | ||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investments | Non-GAAP results | ||||||||||||||||
Income before income taxes | $ | 150 | $ | 5 | $ | 50 | $ | 3 | $ | 208 | ||||||||||
Depreciation expense | 14 | — | — | — | 14 | |||||||||||||||
Amortization expense | 53 | — | (50 | ) | (3 | ) | — | |||||||||||||
Interest expense, net | 34 | — | — | — | 34 | |||||||||||||||
EBITDA | $ | 251 | $ | 5 | $ | — | $ | — | $ | 256 | ||||||||||
EBITDA margin | 9.5 | % | 9.7 | % |
Year Ended January 3, 2020 | ||||||||||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investment | Acquisition related financing costs | Gain on sale of business | Other tax adjustments | Non-GAAP results | |||||||||||||||||||||||||
Operating income | $ | 912 | $ | 5 | $ | 171 | $ | 11 | $ | — | $ | — | $ | — | $ | 1,099 | ||||||||||||||||
Non-operating expense, net | (46 | ) | — | — | — | 2 | (88 | ) | — | (132 | ) | |||||||||||||||||||||
Income before income taxes | 866 | 5 | 171 | 11 | 2 | (88 | ) | — | 967 | |||||||||||||||||||||||
Income tax (expense) benefit(1) | (196 | ) | (1 | ) | (43 | ) | (3 | ) | — | 22 | 7 | (214 | ) | |||||||||||||||||||
Net income | 670 | 4 | 128 | 8 | 2 | (66 | ) | 7 | 753 | |||||||||||||||||||||||
Less: net income attributable to non-controlling interest | 3 | — | — | — | — | — | — | 3 | ||||||||||||||||||||||||
Net income attributable to Leidos common stockholders | $ | 667 | $ | 4 | $ | 128 | $ | 8 | $ | 2 | $ | (66 | ) | $ | 7 | $ | 750 | |||||||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 4.60 | $ | 0.03 | $ | 0.88 | $ | 0.06 | $ | 0.01 | $ | (0.46 | ) | $ | 0.05 | $ | 5.17 | |||||||||||||||
Diluted shares | 145 | 145 | 145 | 145 | 145 | 145 | 145 | 145 |
Year Ended January 3, 2020 | ||||||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investment | Acquisition related financing costs | Gain on sale of business | Non-GAAP results | ||||||||||||||||||||||
Income before income taxes | $ | 866 | $ | 5 | $ | 171 | $ | 11 | $ | 2 | $ | (88 | ) | $ | 967 | |||||||||||||
Depreciation expense | 61 | — | — | — | — | — | 61 | |||||||||||||||||||||
Amortization expense | 184 | — | (171 | ) | (11 | ) | — | — | 2 | |||||||||||||||||||
Interest expense, net | 133 | — | — | — | (2 | ) | — | 131 | ||||||||||||||||||||
EBITDA | $ | 1,244 | $ | 5 | $ | — | $ | — | $ | — | $ | (88 | ) | $ | 1,161 | |||||||||||||
EBITDA margin | 11.2 | % | 10.5 | % |
Year Ended December 28, 2018 | ||||||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investments | Asset impairment charges | Other tax adjustments(1) | Non-GAAP results | ||||||||||||||||||||||
Operating income | $ | 749 | $ | 37 | $ | 201 | $ | 10 | $ | 7 | $ | — | $ | 1,004 | ||||||||||||||
Non-operating expense, net | (139 | ) | — | — | — | — | — | (139 | ) | |||||||||||||||||||
Income before income taxes | 610 | 37 | 201 | 10 | 7 | — | 865 | |||||||||||||||||||||
Income tax expense(2) | (28 | ) | (9 | ) | (51 | ) | (3 | ) | (2 | ) | (101 | ) | (194 | ) | ||||||||||||||
Net income | 582 | 28 | 150 | 7 | 5 | (101 | ) | 671 | ||||||||||||||||||||
Less: net income attributable to non-controlling interest | 1 | — | — | — | — | — | 1 | |||||||||||||||||||||
Net income attributable to Leidos common stockholders | $ | 581 | $ | 28 | $ | 150 | $ | 7 | $ | 5 | $ | (101 | ) | $ | 670 | |||||||||||||
Diluted EPS attributable to Leidos common stockholders | $ | 3.80 | $ | 0.18 | $ | 0.98 | $ | 0.05 | $ | 0.03 | $ | (0.66 | ) | $ | 4.38 | |||||||||||||
Diluted shares | 153 | 153 | 153 | 153 | 153 | 153 | 153 |
Year Ended December 28, 2018 | ||||||||||||||||||||||||
As reported | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investments | Asset impairment charges | Non-GAAP results | |||||||||||||||||||
Income before income taxes | $ | 610 | $ | 37 | $ | 201 | $ | 10 | $ | 7 | $ | 865 | ||||||||||||
Depreciation expense | 56 | — | — | — | — | 56 | ||||||||||||||||||
Amortization expense | 211 | — | (201 | ) | (10 | ) | — | — | ||||||||||||||||
Interest expense, net | 138 | — | — | — | — | 138 | ||||||||||||||||||
EBITDA | $ | 1,015 | $ | 37 | $ | — | $ | — | $ | 7 | $ | 1,059 | ||||||||||||
EBITDA margin | 10.0 | % | 10.4 | % |
Quarter Ended January 3, 2020 | |||||||||||||||||||||||
Operating income (loss) | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investment | Non-GAAP operating income (loss) | Non-GAAP operating margin | ||||||||||||||||||
Defense Solutions | $ | 124 | $ | — | $ | 15 | $ | — | $ | 139 | 9.9 | % | |||||||||||
Civil | 97 | — | 17 | 3 | 117 | 11.4 | % | ||||||||||||||||
Health | 73 | — | 11 | — | 84 | 16.0 | % | ||||||||||||||||
Corporate | (33 | ) | 2 | — | — | (31 | ) | NM | |||||||||||||||
Total | $ | 261 | $ | 2 | $ | 43 | $ | 3 | $ | 309 | 10.5 | % |
Quarter Ended December 28, 2018 | |||||||||||||||||||||||
Operating income (loss) | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investments | Non-GAAP operating income (loss) | Non-GAAP operating Margin | ||||||||||||||||||
Defense Solutions(1) | $ | 80 | $ | — | $ | 17 | $ | — | $ | 97 | 7.7 | % | |||||||||||
Civil(1) | 63 | — | 21 | 3 | 87 | 9.8 | % | ||||||||||||||||
Health | 68 | — | 12 | — | 80 | 16.1 | % | ||||||||||||||||
Corporate | (23 | ) | 5 | — | — | (18 | ) | NM | |||||||||||||||
Total | $ | 188 | $ | 5 | $ | 50 | $ | 3 | $ | 246 | 9.3 | % |
Year Ended January 3, 2020 | |||||||||||||||||||||||
Operating income (loss) | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investment | Non-GAAP operating income (loss) | Non-GAAP operating margin | ||||||||||||||||||
Defense Solutions | $ | 407 | $ | — | $ | 60 | $ | — | $ | 467 | 8.7 | % | |||||||||||
Civil | 295 | — | 67 | 11 | 373 | 10.0 | % | ||||||||||||||||
Health | 242 | — | 44 | — | 286 | 14.3 | % | ||||||||||||||||
Corporate | (32 | ) | 5 | — | — | (27 | ) | NM | |||||||||||||||
Total | $ | 912 | $ | 5 | $ | 171 | $ | 11 | $ | 1,099 | 9.9 | % |
Year Ended December 28, 2018 | |||||||||||||||||||||||||||
Operating income (loss) | Acquisition, integration and restructuring costs | Amortization of acquired intangibles | Amortization of equity method investments | Asset Impairment charges | Non-GAAP operating income (loss) | Non-GAAP operating margin | |||||||||||||||||||||
Defense Solutions(1) | $ | 353 | $ | — | $ | 68 | $ | — | $ | — | $ | 421 | 8.5 | % | |||||||||||||
Civil(1) | 284 | — | 87 | 10 | — | 381 | 11.2 | % | |||||||||||||||||||
Health | 230 | — | 46 | — | — | 276 | 15.2 | % | |||||||||||||||||||
Corporate | (118 | ) | 37 | — | — | 7 | (74 | ) | NM | ||||||||||||||||||
Total | $ | 749 | $ | 37 | $ | 201 | $ | 10 | $ | 7 | $ | 1,004 | 9.8 | % |
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Cover page.
Document Type
8-K
Document Period End Date
Feb. 18, 2020
Entity Registrant Name
LEIDOS HOLDINGS, INC.
Entity Incorporation, State or Country Code
DE
Entity File Number
001-33072
Entity Tax Identification Number
20-3562868
Entity Address, Address Line One
11951 Freedom Drive,
Entity Address, City or Town
Reston,
Entity Address, State or Province
VA
Entity Address, Postal Zip Code
20190
City Area Code
571
Local Phone Number
526-6000
Written Communications
false
Soliciting Material
false
Pre-commencement Tender Offer
false
Pre-commencement Issuer Tender Offer
false
Title of 12(b) Security
Common stock, par value $.0001 per share
Trading Symbol
LDOS
Security Exchange Name
NYSE
Entity Emerging Growth Company
false
Entity Central Index Key
0001336920
Amendment Flag
false